POS Software Blog

Benefits of E-Commerce for Independent Merchants

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I am a true believer that brick-and-mortar retail is here to stay in the USA.  Too many Americans love to shop.  Also, Americans are still social creatures despite our addictions to our smart phones and iPads and other electronic gadgets that continue to consume more of our time each day.  We still love to window shop, browse the aisles of a specialty retail shop and walk the mall taking in the sights, sounds and aromas.  This is especially true during the Holiday Season.  Further, the hospitality segment is even safer.  Although take-out and delivery are nice conveniences, there is nothing like a sit-down meal in an attractive venue even if it is a QSR (Quick-Service Restaurant).

However, there is no denying the data that supports the significant increase in e-commerce transactions over the last few years.  According to the US Commerce Department, 5.1% of all retail sells in Quarter 2 of 2012 were e-commerce transactions.  This is a 15.3% increase over Quarter 2 of 2011.  Further with total retail sales showing a 0.4% decrease from the prior quarter, e-commerce transactions posted a 3.3% increase.  You can view the entire report here - https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf.

So, whether brick-and-mortar retail is here to stay or not, there is no denying the benefit of e-commerce capabilities for independent merchants.  After all, the big box stores have been offering very robust e-commerce extensions of their physical stores for many years.  They have the big budgets and the technology infrastructure to accomplish just about anything in the world of e-commerce.  This offers their customers the flexibility and convenience of shopping from their homes.  So, it is an issue independent merchants cannot ignore if they want to remain competitive.

Below are just a handful of the benefits for independent merchants who implement e-commerce solutions:

1. Extended Range – Obviously, a consumer in California is unlikely to walk into a store in South Carolina to purchase a specialty retail item.  Certainly, if this consumer was traveling, the possibility exists.  However, it is extremely unlikely.  The chances of a repeat visit are even more unlikely.  However, if the store in South Carolina implements an e-commerce extension of the retail location and truly provides a unique offering and a great value, there is a good chance the consumer in California will buy from the business in South Carolina on the web.  Implementing SEO and effective online marketing are key factors to success.  But, the lack of an e-commerce platform altogether leaves the South Carolina merchant essentially invisible to the California consumer.  Essentially, e-commerce capabilities open your store to the entire planet in addition to your local community.
2. Customer Convenience and Savings – With gasoline at $4/gallon and rising, many consumers decide to shop online just to save the trip.  Imagine the money spent in fuel alone when Americans complete their Holiday shopping.  If even a portion of that can be saved through shopping online, consumers will do it in this economic climate.  Further, many consumers don’t like the madness of the Holiday Shopping season and simply prefer to complete their shopping from the comfort of their homes.
3. Labor Savings and Efficiency – Implementing an e-commerce solution can reduce labor costs and free employees up to perform other productive tasks.  Clara’s Tidbits (www.tidbitsfood.com) implemented an online ordering system for their QSR in Jacksonville, FL.  The owner’s objective was to get employees off the phones, eliminate order errors and pricing errors, and provide convenience for the customers.  Employees were often tied up on the phone for long periods of time taking carry-out and catering orders for area offices.  Now that they have implemented an e-commerce platform that is fully integrated with their POS solution, employees spend less time on the phone and more time taking care of business in the store.
4. Image/Brand – As trivial as it sounds, providing an e-commerce extension of your store improves your image as a company.  Today’s consumer is sophisticated and appreciates and respects high tech offerings from the brands they know, like and trust.  Offering e-commerce options to your customers shows that you are committed to survival in a high tech world.
5. POS (point-of-sale) Integration – E-commerce platforms don’t need to add another layer of complexity to your sales and order processing.  Many of them are fully integrated with POS solutions so that orders don’t need to be keyed into the POS when they originate on the web.  Some POS solution providers offer add-on modules that are essentially a web extension of the POS system.  This provides a completely integrated solution for controlling inventory, producing packing slips, shipping documents and automatic order entry and payment processing.  Now, that is efficiency!

The numbers don’t lie.  E-commerce is definitely here to stay.  When implemented properly by independent merchants, the opportunity to increase sales, efficiency and customer service is endless.  To learn more about issues to consider when selecting integrated POS and e-commerce solutions, download our free checklist here.